- Former FTX executive could face up to 7 years for role in crypto exchange’s collapse.
- Sentencing memo highlights unlicensed money transfers, massive campaign finance violations.
- Defense argues for leniency, citing Salame’s early cooperation with authorities.
In the wake of the FTX crypto empire’s collapse, U.S. prosecutors are seeking a 5- to 7-year prison sentence for former executive Ryan Salame. Salame has pleaded guilty to his role in the scandal that led to the exchange’s multibillion-dollar failure. His legal team has countered with a request for a lighter sentence of no more than 18 months.
A sentencing memo filed Tuesday in Manhattan federal court underscored the severity of Salame’s offenses, arguing that a substantial sentence is necessary to deliver just punishment.
Salame’s offenses included campaign finance violations, which rank among the largest in U.S. history. The prosecutors also pointed out his involvement in an unlicensed money-transmitting business that handled over $1 billion without proper oversight.
Notably, Salame is set to be sentenced on May 28. This marks the first sentencing of a top lieutenant under FTX co-founder Sam Bankman-Fried, who himself received a 25-year sentence in March. However, Bankman-Fried’s legal team is appealing that decision.
Other members of Bankman-Fried’s inner circle, including Caroline Ellison, Nishad Singh, and Gary Wang, are also awaiting sentencing.
Notably, Salame joined FTX’s sister hedge fund, Alameda Research, in 2019 and later became the CEO of FTX’s subsidiary in the Bahamas. His criminal activities included facilitating customer deposits through a U.S. bank account without the necessary license and acting as a straw donor for Bankman-Fried’s political contributions.
Salame’s defense has emphasized his cooperation with authorities, being the first to alert them to potential fraud within FTX, as part of their argument for a lenient sentence. His attorneys contended that his actions were influenced by Bankman-Fried, who misled many more experienced individuals.
The Salame sentencing is being closely watched as a potential bellwether for the fate of other former FTX executives. It also raises broader questions about the regulation of cryptocurrency businesses and the accountability of those who misuse them for illicit purposes.
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